Ths USDCAD is trading in a bullish pennant.

We have to keep an eye on the USDCAD as we are trading in a bullish pennant. What is probably more important to the USDCAD (specifically the CAD) is the weakness in crude oil. As crude flirts with the $20 level the risk is these prices will start to weigh on the Canadian economy as they are reliant on a higher price of crude oil than where is trades currently. Technically, the 1.3925 level is near term resistance, but the downtrend line at the 1.4000 level is key for the bulls to take control. Expect dips to the 50% retracement at the 1.3812 level to find buyers.